Oil markets a bit soft on Friday after reaching highs

WTI Crude Oil

The WTI Crude Oil market has been rallying over the last several days, and on Friday saw quite a bit of selling as traders came back for the final session of the week. Ultimately, I think that the $70 level underneath should be massively supportive, as it was massive resistance. That should be the “floor” in the market, at least in the short term. The $72.50 level will be targeted on these pullbacks that should offer value the people are willing to take advantage of. If we did break down below the $70 level, that could cause this market to “reset” below.

Brent

Brent markets also fell to the downside after initially trying to test a fresh, new high during the day on Friday. The $80 level has caused a bit of resistance as you would expect, being a large come around, psychologically significant figure. By breaking down from that level, it looks as if the markets are trying to pull back to build up enough momentum to finally break out to the upside. Ultimately, if we can make a fresh, new high, then the market will continue to reach towards the $82 level. I don’t have any interest in shorting this market, I believe there is more than enough support extending down to at the very least the $77 handle. Look at pullbacks as a buying opportunities, as I believe Friday was more or less going to be thought of as profit taking.

Crude Oil Inventories Video 21.05.18